Lease Option Alternatives
This market sucks. Have you heard that before? I have been hearing that from both sellers and buyers lately. Sellers are having trouble finding qualified buyers, and some buyers are having problems getting loans. People are looking for alternatives to the traditional buyer/seller relationship and lease options give both a way to get what they want. A lease option is a lease rental for a fixed period of time that allows the buyer the option of purchasing the property from the seller with pre-agreed terms. Here is how it works.
The seller offers a home for lease with option an option to buy. The tenant signs a lease agreement with terms that allow them to purchase the house at a later date. The option can be made to the benefit of the landlord or the tenant. Option can include the sale price fixed at a certain amount at the beginning of the lease. It can also specify that the tenant has the right of first refusal on the sale of the house at a later date. The option may or may not require a down payment. Additional, rental payments can be considered partial payment towards the purchase.
The advantage to the tenant is getting their foot in the door on a great place to live. It gives them the chance to experience living in the home without the permanent commitment. It also gives the tenant a chance to save up money for the purchase. Best of all a tenant can lock in a price today, for real estate that will more than likely appreciate tomorrow. The advantage to the landlord is flexibility. The landlord can keep an income generator with the possibility of a windfall in the future. They can plan for retirement or relocation, and still have options if the tenant decides not to purchase.
If you would like to find some lease option properties in Westchester County…jus Ask Rey.